EGX shadows global markets, sheds 5B EGP at open
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) slumped once more at the opening of Thursday’s session, mimicking global market falls yesterday amid ongoing fears of looming economic turmoil.

The benchmark index EGX30 dropped by 1.45 percent, registering 8,765 points, down from 8,893 points Wednesday. The small and mid-cap index EGX70 fell by 1.06 percent, reaching 593.7 points, compared to 600.1 in the last session, and the broader index EGX100 decreased by 1.1 percent to register 1,080 points.

Market capitalization shed around 4.9 billion EGP ($685 million), amounting to 494 billion EGP compared to 498.91 billion EGP Wednesday.

During this session, 93 stocks declined, five shares went up and 17 remained stagnant.

“Retailers, namely local traders, are selling due to panic triggered from the global markets’ plunge, while Arab and foreign traders tended to purchase,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Thursday.

Abdel Rahman added that fluctuation will be obvious during the rest of the session, but he predicted that many prices may recover.

“Closing above 8,800 points will be a positive sign, but breaching below it for two successive sessions will be an indicator that the benchmark index will reverse its medium-term trend,” the analyst concluded.

During the course of this week, the market was controlled by a state of panic in reaction to a U.S. and European share fall last Friday caused by mounting concerns over the pace of global economic growth.

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